Careful, Bears, Dollar Could Surprise, Strategist Says

Traders are just about planning on an April 7 interest rate hike by the European Central Bank. But the approaching end of QE2 could burst the euro's bubble, this strategist says.

Lee Wai Tuck, currency markets strategist at Forecast, told CNBC that he, like many others, expects an interest rate hike by the European Central Bank - though there is an outside chance the Bank of England could squeeze in a rate hike of its own 45 minutes ahead of its European counterpart.

Later in April, though, Lee believes the Fed could change some of the quantitative easing language, and that could give the dollar a lift since expectations for the greenback are so low. If investors think the Federal Reserve "may actually be in a tightening cycle faster than expected, the dollar is likely to rise and you could see the euro actually coming under pressure," Lee said.